U.S. Tax Reserve Act – Reasonable Tax Savings and Proper Reporting Guide

U.S. taxes, why do we have to be thoroughly prepared?
The U.S. has one of the most complex tax laws in the world. In particular, residents, permanent residents, and citizens have to report taxes on their global income, so even if they have income in Korea, they have to report it to the U.S. Internal Revenue Service (IRS). In addition, since tax laws change little by little every year, you need to be fully aware of how to prepare for U.S. tax returns to avoid unnecessary fines or tax penalties.

1. Check the U.S. Tax Return Schedule
U.S. tax returns are based on April 15 each year. However, there may be some variation from state to state, and for international residents, the extension is automatically possible until June 15.

Personal Tax Return (Form 1040): Close April 15
Application for extension (Form 4868): available until October 15
Special extension for overseas residents: Automatic extension until June 15, additional extension can be applied
👉 Importantly, you can apply for an extension, but the tax deadline is not extended. If you don’t pay your taxes on time, you’ll get interest.

2. essential documents for the preparation of tax returns
To prepare your U.S. tax return properly, you need to pack your documents in advance. Typical documents required are as follows.

W-2 Form: If you have earned income in the United States, your employer issues it
1099 Form: for reporting income in various forms, including freelance, self-employed, investment income, etc
Bank interest and dividend income data
Overseas financial account information (for FBAR reporting): Report is required if the total balance of overseas accounts is more than $10,000
Healthcare, education, home mortgage interest details: for tax credits and credit applications
Social Security Number (SSN) or ITIN: Basic Tax Return Information
👉 If you organize receipts and related documents in advance, you can report accurately without panicking during the tax filing period.

3. How to file a U.S. tax return
U.S. taxes can be filed in three main ways.

Self-report (DIY, using online software)
Use software such as TurboTax, H&R Block
Convenient thanks to the automatic input function, even if you do not have a high understanding of tax law
Accountant (CPA) request
Expert assistance required if income structure is complex or if you have overseas assets
Cost-effective but accurate tax savings
IRS Free File
Free use if annual income is below a certain standard
Suitable for college students, low-income workers
4. a U.S. tax-saving strategy
For lawful tax savings, **deduction** and **credit** should be actively utilized.

Standard Deduction: Approximately $14,600 for individuals as of 2025 and $29,200 for joint declaration of couples
Itemized Deduction: Deductible in detail such as medical expenses, mortgage interest, donations, state/local taxes, etc
교육비 세액 공제 (American Opportunity Credit, Lifetime Learning Credit)
Child Tax Credit
Retirement Pension Account (IRA, 401k) Payment: Tax deferral or deduction effect
👉 The key to tax preparation is to identify tax-saving areas in advance and manage your spending strategically.

5. Overseas Asset Reporting (FBAR & FATCA)
U.S. citizens and permanent residents are also required to declare overseas assets.

FBAR (FinCEN Form 114): Report when the total amount of overseas accounts exceeds $10,000 at any point in the year
FATCA (Form 8938): Additional reporting is required if overseas financial assets are above a certain amount

👉 If you omit it, you may be fined 50% of your maximum account balance, so make sure to take it.

6. Common Mistakes in U.S. Tax Filing
Missing Income: Foreign Income, Freelance Income If You’re Excluding
Missing application for tax credit: missing out on educational expenses, child tax credits, etc
Incorrect exchange rate application: IRS accredited exchange rate required for reporting overseas income
Delayed reporting: Fines and interest due to failure to report on time
7. U.S. Tax Reserve Law Enforcement
Remember these steps to prepare your U.S. tax returns well.

Find Out the Reporting Schedule: April 15th, Overseas Residents June 15th
Prepare required documents in advance: W-2, 1099, receipt, overseas account information
Choosing how to report: Self-report vs. professional referrals
Building a tax-saving strategy: making full use of deductions and credits
Prevention of Missing Overseas Asset Reporting: FBAR, FATCA Check
conclusion
U.S. taxes are complicated and tricky, but getting used to systematic preparation and proper reporting practices can help you avoid unnecessary taxes and fines. It is wise to seek professional help, especially if you have foreign income or assets.

👉 After all, the key to U.S. tax preparation law is to “prepare early, collect documents carefully, and legally take advantage of tax-saving opportunities.”

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